Tag: nfc technology

Mobile payments to see strong growth this year

Mobile payments are poised to see explosive growth in the U.S. this year. As more consumers show favor for shopping online using their mobile devices, their proclivity for mobile payments is beginning to show a dramatic increase. A new report from eMarketer, a leading market research firm, suggests that U.S. mobile payments will reach new heights this year and will continue to grow in the near future. Much of this growth is being driven by the focus businesses have been putting on mobile commerce.

Report highlights the future possibilities of the mobile commerce space

According to the report, U.S. mobile payments will surpass the $1 billion mark by the end of 2013. Mobile transactions will be coming from scanning codes with smartphones and tablets, using NFC-enabled devices, and by accessing e-commerce platforms through a device’s web browser. The report predicts that mobile payments will continue to show aggressive growth and account for more than $58 billion by the end of 2017.

Mobile payments face many challenges

While the report suggests a promising future for mobile commerce, it also notes that challenges that this sector has been faced with recently. Over the past year, the mobile commerce space has become inundated with a variety of platforms that offer convenient payment support to consumers. While there is no shortage of variety, none of these platforms have yet established a substantial lead over the others. The problem is that most of these platforms compete on a technological level, meaning that they are not universally accommodating to those interested in making mobile payments. The report suggests that the competition that these platforms create will keep growth in check until 2016.

NFC considered a wild card for many

The report also suggests that continued focus on NFC technology could be problematic for the future of mobile commerce. NFC has been subjected to harsh criticisms concerning security and efficiency. While most mobile commerce platforms are based on the technology, eMarketer notes that the technology itself is considered a “wild card” by those investing in mobile payments.

These techniques are primary behind driving Google billboard consumer engagement.

Google Play has released a new advertising campaign to boost mobile commerce from Android users, employing both QR codes and NFC technology to help to engage with consumers and encourage them to interact with billboard content using nontraditional techniques.

The campaign has been focused on consumers in various parts of Australia.

It was launched by oOh! Media and created mobile commerce connected billboards at the domestic airports located in Melbourne, Sydney, and Brisbane. They allow smartphone carrying travelers to be able to interact with content that is presented to them on digital billboards. They can then pay to download content onto their android smartphones using the free Wi-Fi within the airport, provided by oOh!

The mobile commerce purchase can be activated using either a QR code scan or an NFC tag tap.

Once the mobile commerce transaction is complete, the desired content appears on the screen of the Android based device that was used to buy it. For instance, shoppers may spot a book that they would like to read while viewing one of the Google Play billboard ads in the airport while they are waiting for their flight. They can simply scan a QR code to head directly to the download screen for that digital product and it will be sent immediately to their device.

According to the Google Account communications planning director, Jenn Brown, PhD, “We wanted the campaign to be rewarding, interactive and truly mobile. We wanted this to be at a moment where consumption of entertainment content was top of mind and the airport environment delivered on all of these elements.”

Brown went on to say that the mobile commerce campaign has already managed to bring about more than 2000 interactions, which is considerably greater than any of the “trial” NFC campaign and oOh! campaign engagement metrics that have been achieved worldwide.

The group director of oOh! business strategy, Warwick Denby, explained that this is a first, worldwide, and that it is a prime example of how mobile commerce and billboard displays are very compatible with one another. It also illustrates, said Denby, how smartphones are able to “drive engagement and enable consumers to connect and transact with the brand online – immediately.”